Romanian Equity Investments and Currency Risk: A Euro-Based Perspective

Abstract This paper assesses the benefits and risks of international investments made on Romanian stock market, from perspective euro-based investors. We investigate contribution exchange rate volatility to total risk these over a period nine years, between January 2011 December 2019, by using monthly values for leu Euro index. Our findings indicate that, average, depreciated against euro, causing currency losses investor, counterbalanced index mean return, higher than euro countries return during under analysis. However, comparing with local we find that returns have lower standard deviations values, which may suggest does not seem be an additional factor market denominated in euro. conclusion is supported obtained lambda, synthetic indicator measures proportion attributable fluctuations investor returns. Combined, results imply has only moderate controllable influence